Port of Hueneme power system now expected to cost $11 million

Imported vehicles are the Port of Hueneme's highest-value commodity. In the 2011 fiscal year, more than 200,000 cars passed over its docks.

Ventura County Star

The estimated cost of the Port of Hueneme's shore-side power system has risen by more than $2 million, according to the company in charge of the project.

A state mandate requires ports to build land-based power systems to reduce pollution. The systems are being developed to comply with new regulations requiring that ships anchored at ports turn off their engines to limit emissions. Vessels will plug into equipment at the shore, allowing them to shut down their diesel engines and keep from emitting nitrogen oxides and particulate matter into the air.

The system must be in place by 2014.

The port has struggled to get money for the system, which was projected to cost $9 million but now is expected to cost about $11.4 million, according to a chart presented to the Oxnard Harbor Commission board Tuesday night by the project's manager.

The three commissioners at the meeting — Mary Anne Rooney, Jess Herrera and Jesse Ramirez — flinched when they saw the cost on the chart.

The estimate has increased because the design changed to accommodate vessels better, said Ryan Gragnano of Long Beach-based E2 ManageTech Inc. The original design called for the vessels to have separate retrofits to plug in at the Port of Hueneme. The ships wouldn't need those retrofits at other ports such as Long Beach and Los Angeles.

"We thought that was a lot to ask customers, to have a unique retrofit for the port," Gragnano said.

The port has secured grants to cover all but $6.7 million of the cost, and Executive Director Kristin Decas and her staff are working to find alternate sources of funding.

Several companies are already working on the project. The construction aspect, estimated to cost about $4.7 million, goes out to bid this week.

Also Tuesday, the Oxnard Harbor Commission heard a proposal to raise terminal tariffs for automobiles imported through the port to $26 from $24. At least 18 years have passed since the tariff was last raised, said Chief Operations Officer Pete Wallace. Two customers' contracts are up for renewal at the end of 2013, and their rate will go up to $24.50 by contract.

"So if we didn't do an increase in tariff, our tariff rate at $24 would be lower than our contract rate, so we would need to change our tariff," he said.

Rooney asked whether such an increase would harm competitiveness. Decas said she didn't think it would, saying $26 would still be below the rates of some other regional ports. Los Angeles' rate is $26.46.

The commission is expected to decide on the tariff proposal at its next meeting Dec. 10. Until then, customers and tenants will have the opportunity to make comments for consideration.

The Oxnard Harbor Commission oversees the Port of Hueneme.

Total estimated cost: $11.4 million

Port costs: $6.7 million

Grant funding: $4.75 million

Job: Design and engineering

Company: P2S Consulting Engineering and Commissioning of Long Beach

Estimated cost: $510,000

Port costs: $260,000

Grant funding: $250,000 from Ventura County Air Pollution Control District